Food Business News - January 17, 2012 - 11

Smucker buys food service coffee business from Sara Lee
ORRVILLE, OHIO — The J.M. Smucker Co. has completed the acquisition of the majority of Sara Lee’s North American food service coffee and hot beverage business. The acquisition includes Sara Lee’s liquid coffee concentrate business sold under the Douwe Egberts brand as well as a variety of roast and ground coffee, cappuccino, tea and cocoa products. “We are pleased to complete this transaction, which adds the market-leading liquid coffee concentrate business to the Smucker portfolio,” said Richard Smucker, chief executive ofﬁcer. “The transaction further strengthens our position as a leading North American coffee company, provides new coffee technologies and adds signiﬁcant scale to our food service business. We are excited to welcome the nearly 475 new employees into the Smucker family.” The sale originally was announced in October. “The sale of a major part of our North American coffee business to Smucker is the latest example of CoffeeCo’s focus on creating the strongest possible pure-play company,” said Jan Bennink, executive chairman of the board for Sara Lee. “We look forward to working with Smucker and to the promising future of our new independent coffee and tea company.” Smucker and Sara Lee also have entered a long-term innovation partnership to work on liquid coffee technology for food service. In May 2011, Smucker acquired Rowland Coffee Roasters, Inc., Miami, for $360 million. The transaction included brands such as Café Bustelo and Café Pilon and manufacturing operations in Miami. FBN

Dot Foods, General Mills ink distribution pact
MOUNT STERLING, ILL. — Dot Foods, the nation’s largest food redistributor, has partnered with General Mills’ Convenience Store Division for the distribution of dry products to Dot Foods’ convenience store distributors. Dot Foods was set to begin shipping General Mills dry products on Jan. 16, and as part of the agreement convenience store distributors will be able to purchase General Mills products such as Gardetto’s, Chex Mix, Bugles, and Nature’s Valley from Dot Foods. Dot recently expanded its Mount Sterling warehouse to add capacity for new manufacturers, as well as additional items for existing manufacturers. The company added 136,000 square feet and reconﬁgured its current dry warehouse. Dot Foods Inc. carries 100,000 products from 700 food industry manufacturers. The company distributes food service, convenience, retail and vending food products to distributors in all 50 states. Dot Foods operates eight distribution centers in Modesto, Calif.; Vidalia, Ga.; Burley, Idaho; Mount Sterling, Ill.; Cambridge City, Ind.; Williamsport, Md.; Liverpool, N.Y.; and Ardmore, Okla. FBN

Coca-Cola, Nestle j.v. to focus on Europe, Canada
ATLANTA — The Coca-Cola Co. and Vevey, Switzerland-based Nestle S.A. announced they are phasing out their Beverage Partners Worldwide (B.P.W.) ready-to-drink tea joint venture everywhere but Europe and Canada. The phase outs are expected to occur by the end of 2012. In Taiwan and Hong Kong, CocaCola said it will enter into a license agreement with Nestle for the Nestea brand. Additionally, the current Nestea license granted by Nestle to Coca-Cola in the United States will terminate at the end of 2012, the companies said. “Over the past 10 years, B.P.W. has delivered consistent growth to its parent companies and has expanded the Nestea brand across Europe, Canada and other markets,” Coca-Cola said. “Both partners believe a concentrated focus on Europe and Canada will accelerate the growth and bolster the market presence of B.P.W. where the joint venture is most effective. Both parent companies will be free to independently explore and maximize opportunities for growth in the ready-to-drink tea category in other markets.” The B.P.W. joint venture was formed in 2001 following a period of 10 years during which Nestle and Coca-Cola cooperated in a joint venture called Coca-Cola and Nestle Refreshments. FBN

Tyson Foods expands Arkansas tortilla plant

FAYETTEVILLE, ARK — Tyson Foods Inc is ETTEVILLE ARK. Foods, Inc. close to concluding a multi-million dollar line expansion at its Mexican Original tortilla plant in Fayetteville that has included the renovation of approximately 120,000 square feet of space and the installation of new machinery. The expansion, which is estimated to cost $7 million, will create two additional lines that will produce a new item for a national food service customer, according to the company. Tyson executives said the expansion eventually will require an additional 60 people be hired to run the lines for three shifts. The plant currently employs about 500. The Fayetteville Mexican Original plant is one of Tyson Foods’ three dedicated tortilla operations. The others are in Portland, Ind., and Sanford, N.C. Mexican Original is the nation’s second largest manufacturer of tortillas, which are sold to food service and restaurant customers. FBN

Hansen Natural changes name to Monster Beverage Corp.
CORONA, CALIF. — The shareholders of Hansen Natural Corp. voted to change the company’s name to the Monster Beverage Corp. at a special meeting held Jan. 5. The company’s shares started trading on the NASDAQ under the new name and ticker symbol MNST on Jan. 9. The company markets and distributes a variety of beverages, including energy drinks, sodas, juices, smoothies and teas. FBN

January 17, 2012

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Food Business News - January 17, 2012

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